GBP/USD Signals Update
Yesterday’s signal expired without being triggered.
Today’s GBP/USD Signals
No signal is given today.
GBP/USD Analysis
I wrote yesterday that I expected a move up to be more probable than not during the London session if the price was able to break above 1.5625, and this is exactly once happened when the GBP new event passed. Since then the price has fallen off and apart from a generally bearish picture, there are no key levels nearby at all at which to look for high-probaability trades.
For this reason, while it is possible to short this pair at highs that stick out from the general price action, and in general to short it with any type of trend trading, apart from looking for suspected double bottoms and tops, there is very little to go on. So waiting for levels to trade act is very frustrating at the moment.
We do have a possibly supportive double bottom that has formed in recent days at 1.5600, and if this holds a third time some kind of stronger move up back to the 1.5750 would be quite possible. Should we break below 1.5600 and hold down there, then the psychologically key level of 1.5500 will come into view and be the next logical short target.
There are high-impact news releases scheduled today likely to affect both the GBP and the USD. At 9:30am London time there will be a release U.K. Retail Sales data. Regarding the USD, there will be releases later, starting at 1:30pm with CPI and Unemployment Claims data, followed by the Philly Fed Manufacturing Index at 3pm.